Thread: MS: Howard's contracts at stake

Howard's contracts at stake
By BEN PIPER • August 27, 2008

Howard Industries could lose future state contracts, its business license and recompense for loss of state contracts if it is found in violation of a new law, following a raid Monday at the company's Laurel plant.

During the raid, Immigration and Customs Enforcement agents detained 595 suspected illegal workers at a Howard Industries plant in Laurel.

Federal charges have not yet been filed, and officials said a state investigation has not been launched. But the new law could create problems for Howard Industries, which has locations in Ellisville and Laurel, if action is taken.

The Mississippi Employment Protection Act, which went into effect July 1, states that businesses should hire legal U.S. citizens and then register them with the E-Verify system, an employment verification program.

State Sen. Chris McDaniel, R-Ellisville, co-authored the bill and said enforcement is done through state agencies - the Attorney General's office, Secretary of State's office, Department of Human Services, State Tax Commission and the Department for Employment Security.

But McDaniel said the state may not have a case against the company because of when the law was passed.

"Unless Howard Industries had violated the provisions of Senate Bill 2988 after its enactment date of July 1, the state legislation would not be implicated," he said. "The possible penalties facing Howard appear to be federal in nature."

McDaniel received a $2,000 donation during his 2007 Senate campaign from Howard Industries and Howard Trucking.

Howard Industries had no comment about the fines and penalties the company could face.

Attorney General Jim Hood said a comment could not be made about a possible state investigation of Howard Industries.

"The raid conducted (Monday) on Howard Industries was a result of an independent federal investigation," he said. "Any comment on potential state investigations, charges or penalties is premature."

The Secretary of State's office did not return calls seeking comment.

If an investigation was launched, penalties from the state would be based on violations that occurred after July 1, but could result in Howard Industries' loss of business license for up to a year, loss of state or public contracts for up to three years and any additional costs incurred from lost contracts with the state or any of its agencies.

Howard Industries does have a history working with the state. It received $31.5 million in bonds for expanding transformers and computer manufacturing facilities in 2003.

Under the Mississippi Employment Protection Act, undocumented workers face a felony charge with jail time from one to five years and a fine of $1,000 to $10,000.

McDaniel said the penalties are fair for both employers and employees.

"We are a nation of laws, and we must demand that employers, as well as potential employees, abide by our immigration laws," he said. "When the law was drafted, we wanted to make its enforcement provisions as strong as possible."

State Sen. Michael Watson, R-Pascagoula, co-author of the employment act, said penalties incurred from a possible investigation should sit evenly with the businesses and workers because they are both at fault in the matter.

"It's important to realize that people want to point fingers at the immigrants, but the businesses are taking advantage of that situation," he said. "If we can put a stop to that, then the immigrants wouldn't come here anymore."

McDaniel said if a state agency pursues a case, it would be a circuit court matter. He said a judge would decide the penalties at that level for both the employers and the employees.

Watson said the state should look into the company now that federal action has been taken.

"The state should take a look at it to see that they're abiding by the law and if that's the case then OK, no problems," he said. "But we want people to abide by the laws and as long as you are making the effort then you won't be punished."
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[b]The Elitist Politicians, their Elitist Contributors. Big Labor, Big Religion, Chamber of Commerce, Special Interest Groups consider United States and Mississippi citizens only as “units of laborâ€

Miss. Company Pleads Guilty in Immigration Raid

The company had repeatedly denied knowing that illegal immigrants worked at the plant, but pleaded guilty in U.S. District Court to one count of conspiracy. The company agreed to pay a $2.5 million fine, which is larger than normal for such a conviction, the U.S. Justice Department said in a news release.

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